⚠️⚠️⚠️ Update!⚠️⚠️⚠️ The community expressed many concerns about our initial proposal (outlined below), so we made revisions. Please read about the new and (we hope) improved proposal here, then join our Reddit discussion forum here.
Everything below the three dots is now out of date.
During the 2022 bear market, QuickSwap’s dragons have been flying at lightning speed to ensure that QuickSwap remains a premiere Polygon DEX. We’ve taken numerous measures to increase economic activity and revenue for QUICK stakers and the QuickSwap Foundation. We’ve added a predictions market built by PRDT Finance, acquired an exclusive license to operate Algebra’s V3 concentrated liquidity model (which we expect to launch sometime in Q3 of this year) on Polygon and Polygon-enabled chains, voted to introduce an isolated lending and borrowing market, and unanimously voted to add a Build-a-Farm feature powered by Cryption Network. It’s now time for us to discuss implementing another feature: banner ads.
TL; DR:
- Bear markets bring challenges for projects and their token holders. QuickSwap needs to increase our revenue so we can keep building. Simultaneously, we want to provide higher APYs for QUICK stakers to compensate for the market’s volatility
- We would like to start a discussion about featuring banner ads on our UI
- Banner ads will bring increased revenue for QUICK stakers and the QuickSwap Foundation
- Banner ads are easy to implement and will be ready to launch as soon as the governance vote concludes if the community votes in favor
- We appreciate your input, which is why we’re introducing this discussion before conducting a governance vote
- We would like to move quickly and hopefully pass this proposal so that we can increase revenue for all QUICK stakers sooner than later
- Please read through this entire post carefully before forming an opinion
- Once you’ve read it, visit our Reddit discussion forum to ask any questions and/or discuss with the team and community: https://www.reddit.com/r/QuickSwap/comments/w43i11/governance_discussion_should_quickswap_implement/
Dragon enthusiasts everywhere, today we’re introducing a discussion about something that we believe will positively impact QuickSwap and our community. We would like to feature banner ads on our UI to increase QuickSwap’s revenue, which will then be split between QUICK stakers and the QuickSwap Foundation. If we move to vote and this vote passes, ⅔ of the revenue collected from banner ads will be distributed to QUICK stakers, and ⅓ will be used to fund QuickSwap’s Foundation, which is how we pay for our development and operations costs.
What would that look like?
Above, is an example of what banner ads could look like on QuickSwap.
We’re sure you’re already familiar with how banner ads work and have a general idea of what they look like. Many sites you’re already familiar with feature them. Websites’ owners profit from their sales. On QuickSwap, we want to share those profits with you — QUICK stakers.
Who would we sell Banner Ads to?
Many projects that come to QuickSwap for liquidity mining rewards and to participate in our Dragon’s Syrup program are looking for co-marketing opportunities. Currently, we provide tweets, retweets, and announcements to help our marketing partners, but in a bear market, with lower than average engagement, that isn’t enough for many small projects to justify providing tens of thousands of dollars (or more) in their tokens for Syrup Pools. This is one of the reasons why we’d like to feature banner ads.
We would also like to offer banner ads sales that are independent of liquidity mining and syrup rewards to those who want to purchase them.
We have already discussed this with several projects who want to do co-marketing with QuickSwap, and they have expressed interest in this option.
How much would the banner ads cost?
We’ve come up with a pricing structure that we believe is commensurate with QuickSwap’s user base and offers a competitive value in our industry.
As you can see from the above images, we plan to offer three tiers of pricing:
- Tier 1 costs either $16.5k/month or $19.8k in their token for Dragon’s Syrup. It includes 5 premium ad spot placements per month, 1 organic tweet, and 2 retweets per week for the first 2 weeks
- Tier 2 costs either $6k/month or $7.2k in their token for Dragon’s Syrup. It includes 10 regular ad spot placements per month and 2 retweets per week for the first 2 weeks
- Tier 3 costs either $10k/month or $12k in their token for Dragon’s Syrup, and it includes 2 economy ad spot placements
Please note: The prices listed above are subject to change depending on demand
How much revenue would banner ads bring?
Please keep in mind that we have no way of knowing exactly how much revenue banner ads will bring in the short term. At the moment, all markets are highly volatile. In these tough market conditions, and with many protocols suffering from a large reduction in funds, accurately estimating our potential revenue is very difficult because it depends on factors that we cannot control.
After analysing data from a variety of protocols that already offer banner ads, we constructed the estimates based on 4 different possibilities: Low ad engagement, Medium ad engagement, High ad engagement, and Maximum ad engagement.
Due to current market conditions, we expect the Low engagement scenario initially and believe that will change over time.
If advertisers pay the cash price…
If we sell one Tier 1 package and two Tier 2 packages per month for the cash price: $16.5k + 2($6k) = $28,500
- ⅔ would be used to market buy QUICK and distribute to Dragon’s Lair stakers = ($28,500 x 0.67) = $19,095
- ⅓ would go to the QuickSwap Foundation = ($28,500 x 0.33) = $9,405
If advertisers pay the Syrup price…
Again, assuming the low engagement scenario from the above chart:
If we sell one Tier 1 and two Tier 2 packages: $19.8k + 2 ($7.2k) = $34,200
- ⅔ would be distributed to Dragon’s Syrup stakers = ($34,200 x 0.67) = $22,914
- ⅓ would go to the QuickSwap Foundation = ($34,200 x 0.33) = $11,286
- Also note that if market conditions improve, the QuickSwap Foundation may choose to forgo their ⅓ stake and give all of the earnings to the community
Please remember, these are conservative estimates based on the data we’ve seen from other crypto-focused sites that feature banner ads and the present-day market. It is possible that we will sell significantly more packages and have much higher revenue than the above estimate suggests; however, it is also possible that the revenue will be lower than expected.
Advantages & Disadvantages
If decisions didn’t have pros and cons, there would be no reason to vote on them. QuickSwap’s team believes the advantages far outweigh the disadvantages that come with featuring banner ads.
Pros
- More co-marketing options for Polygon projects
- Increased exposure to tokens that may radically increase in value
- Increased exposure to products and/or services that may interest QuickSwap’s users
- Higher revenue for stakers in the Dragon’s Lair
- More options for stakers in Dragon’s Syrup pools to choose from
- Increased revenue to fund QuickSwap’s growth and development
Cons
- Increased exposure to tokens that may radically decrease in value
- Increased exposure to products and/or services that may prove harmful to QuickSwap’s users
- Some people find ads annoying
QuickSwap always urges users to do their own research (DYOR) and never speculate with funds they can’t afford to lose. If QuickSwap’s community votes to feature banner ads on our UI, users must recognise that an ad does not equal an endorsement from QuickSwap.
Be sure to visit our Reddit discussion forum to talk through this proposal with your favorite team and community. In a few days, if the community seems to be on board, we’ll release a formal governance vote. If that vote passes, we’ll begin selling ad space immediately and pass on a portion of the revenue to you — QUICK stakers.
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By QuickSwap Official on July 21, 2022.
Exported from Medium on May 2, 2023.